In this article, we will explore the 8 high-growth software stocks that are profitable in 2024.

The Software Industry: An Analysis

The software market is experiencing robust growth, driven by various trends and technological advancements. According to Precedence Research, the global software market size reached $659.17 billion in 2023​. Looking forward, the market is expected to grow at a compound annual growth rate (CAGR) of 11.8% during 2024 – 2034 to reach $2.24 trillion by ​the end of the forecast period. In 2023, the North American region led the software market, holding a substantial share of 44%. The Asia-Pacific region is expected to witness significant growth during the forecast period.

A key factor influencing the market is the rise of artificial intelligence (AI). AI technologies are being integrated into software solutions to enhance efficiency and automate repetitive tasks. A study from Salesforce reveals that 85% of IT leaders expect AI to boost developer productivity over the next three years. This expectation underscores the growing recognition of AI’s role in streamlining workflows and optimizing software performance.

Another significant trend is the shift towards cloud-based software. Companies are migrating from traditional on-premises solutions to cloud services due to their flexibility, scalability, and cost-effectiveness. This transition allows businesses to access applications remotely and across various devices, which has become crucial in today’s digital landscape.

The 2024 AlgoSec State of Network Security report highlights a notable shift towards multi-cloud environments. The research, based on surveys conducted in H2 of 2022 and 2023, evaluated major players like AWS and Microsoft Azure. It indicates that security, continuity, and compliance are key factors driving organizations to adopt cloud platforms. While cloud adoption is growing, Azure remains the most popular platform, with AWS rapidly gaining ground.

The report also reveals that the move to remote work has significantly boosted Software-Defined Wide Area Networks (SD-WAN) deployment, dropping the percentage of organizations without SD-WAN from 55.2% in 2022 to 34% in 2023. Secure Access Service Edge (SASE) has become a popular solution for organizations by consolidating security functions into a unified cloud service. Additionally, firewall implementation has surged, with only 7.1% of respondents reporting no firewalls in 2023, down from 28.4% in 2022. This trend reflects a growing focus on securing cloud networks against external threats.

With an overview of the global software market in mind, let’s take a look at the 8 high-growth software stocks that are profitable in 2024.

Methodology

To compile our list of the 8 high-growth software stocks that are profitable in 2024, we used stock screeners from Finviz and Yahoo Finance. We sorted our results based on market capitalization and picked the top 50 largest software companies by market cap.

To narrow down our list to high-growth software stocks, we focused on companies with a compound annual growth rate (CAGR) in net revenue exceeding 18% over the past 5 years.

Next, we focused on profitability. From this initial list of high-growth software stocks, we narrowed our choices to stocks that had positive trailing twelve-month (TTM) net income and stocks that have grown their net income positively over the past 5 years.

To ensure the reliability of our findings, we consulted reputable sources such as SeekingAlpha, which provided insights into the net income CAGR and revenue CAGR over the past five years, and YCharts, which offered information on TTM net income.

Finally, from this list of high-growth software stocks that met our criteria, we focused on the top 8 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s database of 912 elite hedge funds. The 8 high-growth software stocks that are profitable in 2024 are ranked below in ascending order based on the number of hedge funds holding stakes in them as of Q2 2024.

Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

8 High Growth Software Stocks That Are Profitable In 2024

8. Zoom Video Communications Inc. (NASDAQ:ZM)

TTM Net Income: $875.37 Million

5-Year Net Income CAGR: 132.61%

5-Year Revenue CAGR: 58.14%

Number of Hedge Fund Holders: 39

Zoom Video Communications Inc. (NASDAQ:ZM) is a software and communications technology company best known for its video-conferencing application, Zoom. Recently, the company launched Zoom Workplace, an AI-powered collaboration platform designed to enhance modern work environments. This platform aims to streamline communication, boost employee engagement, and improve productivity by integrating various tools such as meetings, team chat, and phone services into a single interface.

The company is actively enhancing its offerings. Recently, Zoom Video Communications Inc. (NASDAQ:ZM) launched a new Zoom Webinar feature that can accommodate up to 1 million attendees, revolutionizing the way organizations can connect with huge audiences and showcasing the clear scalability advantage.

Additionally, Zoom Video Communications Inc. (NASDAQ:ZM) is experiencing a surge in the adoption of its advanced Contact Center packages as businesses increasingly leverage its AI capabilities to improve agent performance. Notably, all of the company’s top ten Contact Center wins in its Q2 2025 involved displacing competitors. This success underscores how well Zoom’s offerings meet customer needs and validates its strategy of providing integrated solutions for both customer and employee experiences.

As Zoom continues to expand its capabilities, it is preparing to enter the next phase of AI-enabled work, where AI Companion will simplify workflows, provide contextual insights, and perform tasks to further streamline operations.

At the end of the second quarter of fiscal year 2025, Zoom Video Communications Inc. (NASDAQ:ZM) had 3,933 customers generating over $100,000 in trailing 12 months revenue, which is a 7.1% increase from the same time last year. The company reported total revenue of $1.16 billion for the quarter, reflecting a 2.1% rise year-over-year. Enterprise revenue reached $682.8 million, up 3.5% compared to the previous year. Additionally, operating cash flow improved significantly, totaling $449.3 million, which is a 33.7% increase from the same quarter last year.

As one of the most profitable high-growth stocks, Zoom Video Communications Inc. (NASDAQ:ZM) has managed to grow its revenue at a compound annual growth rate (CAGR) of 58.14% over the past five years, while its net income has increased at a CAGR of 132.61% during the same period.

Given its consistent innovations and impressive financial results, Zoom Video Communications Inc. (NASDAQ:ZM) stands out as an attractive investment opportunity.

7. Fortinet Inc. (NASDAQ:FTNT)

TTM Net Income: $1.31 Billion

5-Year Net Income CAGR: 28.51%

5-Year Revenue CAGR: 23.11%

Number of Hedge Fund Holders: 42

Fortinet Inc. (NASDAQ:FTNT) is a cybersecurity company that develops and sells software and network security solutions. The company’s portfolio of more than 50 enterprise-grade products is the largest integrated offering available, delivering protection to networks, users, and data from continually evolving threats.

The company is actively pursuing its strategy to lead in the rapidly growing Unified SASE (Secure Access Service Edge) and Security Operations markets while also increasing its market share in Secure Networking. The company aims to differentiate itself as a SASE leader, being the only vendor recognized in multiple Gartner Magic Quadrant reports for both Single-Vendor SASE and various network security categories. By developing all SASE functions organically within a single operating system, Fortinet Inc. (NASDAQ:FTNT) offers a comprehensive stack that includes its market-leading SD-WAN, ZTNA, Secure Web Gateway, CASB, Firewall, and more, enhancing user experiences while securing access to both on-premise and cloud applications.

Recently, Fortinet Inc. (NASDAQ:FTNT) acquired Next DLP, a cloud-native data protection platform that will enable the company to enter the enterprise DLP market and enhance its SASE solutions.

The company is also enhancing its Secure Ops portfolio by leveraging over a decade of AI experience to provide advanced analytics and sensors that continuously monitor access activities for signs of cyber threats. In August, Fortinet Inc. (NASDAQ:FTNT) acquired Lacework, a cloud security and cloud-native application protection platform, which significantly broadens the company’s security offerings and increases the company’s total addressable market by $10 billion. This acquisition, combined with the integration of AI-driven solutions, positions Fortinet to deliver comprehensive protection across network, cloud, and endpoint environments.

From its acquisitions of Next DLP and Lacework, Fortinet Inc. (NASDAQ:FTNT) will gain over 900 new customers along with skilled sales and engineering teams. This expansion will enhance the company’s position in the market.

Fortinet Inc. (NASDAQ:FTNT) has seen impressive growth over the last five years, with revenue increasing at a compound annual growth rate (CAGR) of 23.11% and net income rising at a CAGR of 28.51%.

6. The Trade Desk Inc. (NASDAQ:TTD)

TTM Net Income: $253.36 Million

5-Year Net Income CAGR: 21.00%

5-Year Revenue CAGR: 31.16%

Number of Hedge Fund Holders: 46

The Trade Desk Inc. (NASDAQ:TTD) is a leading advertising technology company that specializes in advertising solutions for digital marketers. It offers a self-service, transparent software and cloud-based platform that allows advertisers to create, manage, and optimize their digital ad campaigns across various channels and devices.

The company is focused on enhancing its advertising technology with the recent launch of its innovative platform, Kokai. This platform allows clients to utilize data about their most loyal customers to identify and target new audiences. By leveraging AI, Kokai helps advertisers navigate approximately 15 million ad opportunities every second, optimizing their campaigns in line with their unique growth objectives. The company has also made significant progress in Connected TV (CTV) and retail media, strengthening its partnerships with major networks like Netflix and FOX to help engage their audiences and drive results.

In Q2 2024, The Trade Desk Inc. (NASDAQ:TTD) reported impressive financial results, with revenue reaching $585 million, marking a 26% increase year-over-year. Net income also saw substantial growth, rising to $85 million from $33 million in the same quarter last year. The company finished the second quarter with a solid cash and liquidity position, holding $1.5 billion in cash, cash equivalents, and short-term investments. In Q2 2024, The Trade Desk maintained a customer retention rate of over 95%, continuing a trend that has lasted for the past ten years.

TTD ranks among the most profitable high-growth stocks to invest in. Over the past five years, the company has seen its revenue grow at a compound annual growth rate (CAGR) of 31.16%, with net income increasing at a CAGR of 21%.

With ongoing innovations and a strong market position, The Trade Desk Inc. (NASDAQ:TTD) presents a compelling investment opportunity for those looking to capitalize on the evolving landscape of digital advertising.

As of the second quarter of 2024, The Trade Desk Inc. (NASDAQ:TTD) was held by 46 hedge funds, according to Insider Monkey’s database. Parnassus Investments stated the following regarding The Trade Desk Inc. (NASDAQ:TTD) in its “Parnassus Mid Cap Fund” second quarter 2024 investor letter:

“The Trade Desk Inc. (NASDAQ:TTD), a cloud-based media-buying platform for advertisement purchasers, reported a strong quarter based on increasing demand for connected TVs. The stock received another boost after the company announced a partnership with Netflix, which should accelerate Trade Desk’s growth.”

5. Veeva Systems Inc. (NYSE:VEEV)

TTM Net Income: $615.26 Million

5-Year Net Income CAGR: 16.40%

5-Year Revenue CAGR: 21.58%

Number of Hedge Fund Holders: 50

Veeva Systems Inc. (NYSE:VEEV) is a leading provider of cloud-based software solutions specifically designed for the life sciences and consumer products industries. The company addresses the unique challenges and regulatory needs faced by businesses in these sectors, helping them streamline operations and improve efficiency. Veeva’s innovative solutions enable companies to bring high-quality products to market more quickly while ensuring safety and compliance.

The company is making significant strides in enhancing its product offerings and expanding its market presence. Veeva Systems Inc. (NYSE:VEEV) recently launched the Vault CRM Service Center, which helps connect sales, marketing, medical, and service teams to improve customer-centricity. Additionally, the company introduced the Veeva Site Connect platform, which streamlines clinical trials by simplifying collaboration between sponsors and research sites. This platform has already gained traction, with seven of the top 20 pharmaceutical companies adopting it to enhance trial efficiency.

Veeva Systems Inc. (NYSE:VEEV) reported strong results for Q2 2025, with total revenues reaching $676.2 million, a 15% increase from the previous year. Subscription services revenue grew by 19% year-over-year to reach $561.3 million. In its Q2 2025, the company reported net income of $171.0 million, a 53% increase from $111.6 million a year ago. The non-GAAP net income for the same period was $267.3 million, compared to $198.0 million last year, which is a 35% rise.

Over the past five years, Veeva Systems Inc. (NYSE:VEEV) has grown its revenue at a compound annual growth rate (CAGR) of 21.58%, while its net income has increased at a CAGR of 16.40% during the same period. Over the past 5 years, the company has also grown its levered free cash flow at a CAGR of more than 20%. VEEV ranks among the top 5 on our list of high-growth software stocks that are profitable in 2024.

As of the second quarter of 2024, Veeva Systems Inc. (NYSE:VEEV) was held by 50 hedge funds, according to Insider Monkey’s database. Ensemble Capital Management stated the following regarding Veeva Systems Inc. (NYSE:VEEV) in its second-quarter 2024 investor letter:

“Lastly, Ensemble has recently taken a position in Veeva Systems Inc. (NYSE:VEEV), which we believe is expanding its lead in the life sciences software market. As pharma, biotech, medtech and contract research organization (CRO) companies buy more of Veeva’s applications that tie together on its cloud-based Vault platform, the more efficient and stickier those customers become. We expect this to fuel above-average growth in revenue and profits for Veeva over the next decade.”

4. Global Payments Inc. (NYSE:GPN)

TTM Net Income: $1.41 Billion

5-Year Net Income CAGR: 23.85%

5-Year Revenue CAGR: 22.72%

Number of Hedge Fund Holders: 66

Global Payments Inc. (NYSE:GPN) is an American payments technology company that offers innovative software and services to clients worldwide. The company specializes in providing a comprehensive range of solutions that help businesses operate more efficiently across various channels. It delivers tailored technology designed for various industries. The company’s unique end-to-end global commerce platform operates in over 100 countries, enabling clients to streamline their payment processes and enhance customer experiences.

At its recent 2024 Investor Conference, the company outlined a clear strategy aimed at becoming the preferred partner for commerce solutions worldwide. Global Payments Inc. (NYSE:GPN) plans to unify its Merchant Solutions globally under a common brand, Genius. The company will be focusing on small and medium-sized businesses (SMBs) to provide its comprehensive suite of software and commerce solutions. Additionally, Global Payments Inc. (NYSE:GPN) is capitalizing on growth opportunities in its Issuer Solutions segment through cloud modernization and cross-selling initiatives, while also evaluating options to enhance shareholder value.

Global Payments Inc. (NYSE:GPN) anticipates that its operational transformation initiatives will unlock over $500 million in adjusted run-rate operating income benefits by mid-2027. With a strong business model and robust free cash flow generation, the company aims to return $7.5 billion to shareholders over the next three years.

The company is actively enhancing its market position by expanding its point-of-sale solutions and entering new partnerships. Recently, Global Payments Inc. (NYSE:GPN) announced an agreement with Diamond Baseball Holdings to become the official commerce technology partner for its Minor League Baseball franchises in the US and Canada. Additionally, the company has secured new stadium partnerships with several UK football clubs, including Newcastle, Birmingham City, and Nottingham Forest.

Global Payments Inc. (NYSE:GPN) reported strong performance for Q2 2024, with GAAP revenue reaching $2.57 billion, a 5% increase year-over-year. The company also reported GAAP diluted earnings per share (EPS) of $1.47, marking a significant 40% rise from the previous year.

With a focus on operational transformation and strategic growth, the company is well-positioned to capitalize on future opportunities, making it an attractive stock for potential investors. Analysts have a positive outlook on GPN, with a 12-month median price target of $130.00. This suggests a potential increase of 26.42% from the current stock price.

As one of the most profitable high-growth stocks, Global Payments Inc. (NYSE:GPN) has managed to grow its top line at a compound annual growth rate (CAGR) of 22.72% over the past five years, while its bottom line has increased at a CAGR of 23.85% during the same period.

According to Insider Monkey’s Q2 database of over 900 hedge funds, 66 hedge funds held stakes in Global Payments Inc. (NYSE:GPN) in the second quarter of 2024.

3. Intuit Inc. (NASDAQ:INTU)

TTM Net Income: $2.96 Billion

5-Year Net Income CAGR: 13.73%

5-Year Revenue CAGR: 19.14%

Number of Hedge Fund Holders: 82

Intuit Inc. (NASDAQ:INTU) is a leading American software company specializing in financial technology solutions. It offers well-known products such as TurboTax for tax preparation, QuickBooks for small business accounting, Credit Karma for personal finance management, and Mailchimp for email marketing. The company is actively integrating advanced technologies like artificial intelligence to improve user experiences and streamline financial processes.

The company is leveraging its investments in AI to enhance its offerings. Intuit Inc. (NASDAQ:INTU) recently introduced Intuit Assist, a generative AI-powered assistant designed to simplify financial tasks for consumers and small businesses. In fiscal year 2024, TurboTax Live’s revenue increased by 17%, while QuickBooks Live saw its new customer base more than triple. The company also achieved a 20% year-over-year growth in total online payment volume and helped small businesses secure $2.4 billion in financing through QuickBooks Capital. With ongoing investments to digitize the financial experience, Intuit Inc. (NASDAQ:INTU) is well-positioned to deliver innovative solutions that meet the evolving needs of its users.

According to Insider Monkey’s database, INTU has attracted increased interest from institutional investors, with 82 hedge funds holding stakes in the company as of Q2 2024, up from 77 in Q1 2024. This growing confidence reflects the company’s impressive growth trajectory. In the last five years, Intuit Inc. (NASDAQ:INTU) has achieved a revenue growth rate of 19.14% annually, while its net income has grown at an average rate of 13.73% during the same period.

Intuit Inc. (NASDAQ:INTU) ranks among the top 3 on our list of the high-growth software stocks that are profitable in 2024. Analysts are also bullish on INTU. Analysts currently hold a consensus buy rating on the stock and the 1-year median price target of $740.00 set by analysts indicates a potential upside of 19.54% from current levels.

Baron Funds stated the following regarding Intuit Inc. (NASDAQ:INTU) in its “Baron FinTech Fund” second quarter 2024 investor letter:

“Intuit Inc. (NASDAQ:INTU) has been rolling out Intuit Assist, a GenAI powered digital assistant, across its product lines to help Credit Karma users select new credit cards, QuickBooks customers forecast cash flow, Mailchimp customers create targeted email marketing campaigns, and TurboTax customers understand changes in their tax returns from the prior year. Klarna, the privately held consumer lending and payments company, is cutting costs by using GenAI assistants to handle two-thirds of customer service chats and reduce its dependency on external marketing agencies. We consider these GenAI advancements to be evolutionary rather than revolutionary, but we continue to closely monitor the impact of new technologies on the fintech industry.”

2. ServiceNow Inc. (NYSE:NOW)

TTM Net Income: $1.14 Billion

5-Year Net Income CAGR: 233.07%

5-Year Revenue CAGR: 27.02%

Number of Hedge Fund Holders: 97

ServiceNow Inc. (NYSE:NOW) is an American software company that ranks second on our list of the 8 high-growth software stocks that are profitable in 2024. The company focuses on cloud-based solutions for managing digital workflows across various industries. ServiceNow Inc. (NYSE:NOW) offers a robust platform that uses artificial intelligence and machine learning to automate and enhance business processes. This helps organizations improve efficiency, achieve better outcomes, and drive digital transformation.

The company has established itself as a major player in the enterprise software market through strategic collaborations and investments in innovation. In 2020, it launched an industry solutions strategy aimed at creating customized workflows for industries like banking and telecommunications. ServiceNow Inc. (NYSE:NOW) is collaborating with firms such as Deloitte and Accenture to tackle specific industry challenges and increase market reach.

The company is also expanding its global footprint with plans to introduce a UAE Cloud on Microsoft Azure by mid-2025. This service will support both public and private organizations in the UAE with advanced tools for business transformation. Moreover, ServiceNow has invested in inMorphis to strengthen its presence in India and the ASEAN region.

ServiceNow Inc. (NYSE:NOW) reported impressive financial results for Q2 2024, surpassing its growth expectations. Subscription revenues reached $2.54 billion, a 23% increase year-over-year, while total revenues grew by 22% to $2.62 billion. The company’s remaining performance obligations also rose significantly, indicating a strong pipeline for future revenue.

Over the past five years, ServiceNow Inc. (NYSE:NOW) has achieved an average annual growth rate of 27.02% in revenue and an impressive 233.07% growth in net income. These results reflect the strong demand for its services and the company’s ability to capitalize on market opportunities, positioning it well for continued success in the future.

1. Salesforce Inc. (NYSE:CRM)

TTM Net Income: $5.63 Billion

5-Year Net Income CAGR: 42.75%

5-Year Revenue CAGR: 19.88%

Number of Hedge Fund Holders: 117

Salesforce Inc. (NYSE:CRM) is a leading American cloud-based software company that specializes in customer relationship management (CRM) software and applications that cover sales, customer service, marketing, e-commerce, analytics, and application development. As the world’s top AI CRM platform, Salesforce serves over 150,000 businesses with its cloud-based software solutions.

The company is making significant strides in transforming enterprise software with its new Agentforce AI platform. This innovative platform allows businesses to create and customize autonomous agents, which can automate workflows across various functions such as sales, service, and marketing. By integrating its core technologies with AI capabilities, Salesforce is enhancing customer interactions and improving overall efficiency. The company has already seen impressive results, signing 1,500 AI deals in its second quarter fiscal 2025, reflecting strong demand for its AI-driven solutions.

Recently, Salesforce Inc. (NYSE:CRM) announced that it has signed a definitive agreement to acquire Tenyx, a developer of AI-powered voice agents. This acquisition will enhance the company’s autonomous agent capabilities and improve customer service interactions.

For Q2 2025, Salesforce reported a revenue of $9.33 billion, an 8% increase year-over-year. The company’s operating cash flow reached $892 million, up 10% year-over-year. In Q2, the number of paid customers increased by 130% compared to the same time last year, and the count of customers spending over $1 million each year almost doubled. Salesforce Inc. (NYSE:CRM) returned $4.3 billion to shareholders through share repurchases and issued nearly $400 million in dividend payments to stockholders.

These results underscore the company’s strong financial performance and commitment to leveraging AI for future growth.

Remaining performance obligations (RPO), which indicate all future revenue under contract, reached $53.5 billion at the end of Q2 2025, marking a 15% increase year-over-year.

Over the past five years, Salesforce Inc. (NYSE:CRM) has grown its revenue at a compound annual growth rate (CAGR) of 19.88%, while its net income has increased at a CAGR of 42.75% during the same period.

According to Insider Monkey’s Q2 2024 database of over 900 hedge funds, 117 hedge funds held stakes in Salesforce Inc. (NYSE:CRM).

Parnassus Investments stated the following regarding Salesforce Inc. (NYSE:CRM) in its “Parnassus Growth Equity Fund” second quarter 2024 investor letter:

“Salesforce Inc.’s (NYSE:CRM) growth continues to moderate, and investors question its prospect as it relates to AI. We remain confident that the company, which developed the original salesforce automation product and pioneered the SaaS (software as a service) delivery model, is well positioned to capitalize on emerging AI opportunities.”

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